BRP Reorganizes Part Of Its Assembly And Distribution Operations To Meet Its Growth

Published online: Jun 01, 2012News

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Valcourt, Québec - BRP is adapting its strategy to its
growth plan by reorganizing part of its operations. Starting in 2013, the
company will expand its existing production capacity in Mexico by
transferring engines currently being manufactured in Juárez to a new plant. The assembly of watercraft (PWC) will also be transferred
from Valcourt to the new plant. In addition, BRP will assign the North American
distribution of its parts, accessories and clothing (PAC) to a logistics
provider.

The transfer of the PWC assembly to Mexico will
enable BRP to be more competitive and it will free space on the main assembly
line in Valcourt to increase the roadster production and meet the increasing
demand. The transfer of engine assembly to the new plant in Mexico will allow
for increased production capacity in Juárez, which will help meet the fast
growing demand for all terrain and side-by-side vehicles already manufactured
in that plant. By using a specialized firm to handle the North American distribution,
BRP will gain greater flexibility to meet the projected growth of its PAC business
and will reduce capital investment while improving customer service.

"Building a global multi-market business is an ongoing
process. To remain a market leader, BRP needs to constantly challenge itself
and adapt to change," José Boisjoli, president and CEO, said. "This
is not the first time that we change things at BRP; nor will it be the last.
While we remain very much committed to our heritage and roots in Valcourt, we
must become more flexible to leverage our growth opportunities."

Over the next 18 to 36 months, approximately 500 employees
will be affected by these decisions. These employees will be presented with
options including positions within or outside BRP or retirement packages
greatly minimizing the number of layoffs.

Boisjoli continued, "We successfully recovered from the
recession by making critical investments and difficult decisions. We
collaborated with our employees to maximize efficiency. However, we still have challenges
stemming from regulatory constraints in several emerging markets. As we
continue to expand our global presence, we will require more manufacturing
flexibility so that we can secure our presence in these countries."

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